Groww Sets Sails For D-Street

All decks have been cleared for Groww’s D-Street debut. The investment tech unicorn has received SEBI’s nod after making a confidential filing, and as per sources it is expected to raise $800 Mn to $1 Bn from its public offering at a hefty valuation in the range of $7 Bn-$8 Bn.

Groww’s IPO Bet: The investment tech major’s IPO has much working for it — a 1.5 Cr user base, diversified offerings, a strong brand recall and the rising smartphone and internet penetration. But, the biggest shot in Groww’s arm was its profitable show in FY25:

• The company clocked a profit of INR 1,819 Cr against a loss of INR 799 Cr in FY24


• Operating revenue rose 30% YoY to INR 3,844 Cr

The Not So Smooth Ride: Groww’s IPO comes at a time when the market volatility has forced many, including Zetwerk and PayU India, to postpone their listing plans, while most new-age tech IPOs, so far this year, have turned out to be duds. Meanwhile, SEBI’s clampdown on F&O trading is expected to have hit Groww’s revenues in FY25, while near-zero fee structures continue to weigh on profitability.

Rivals On the Prowl: Then, there is also the looming shadow of Zerodha, which dwarfs Groww – both in terms of revenues and profits. Making matters worse is the intensifying competition from other established players like Angel One and Upstox, as well as new entrants like JFS and Paytm Money.

With all eyes now on the investment giant, here’s a sneak peek into Groww’s listing plans.

From The Editor’s Desk

A23 Challenges RMG Ban: The gaming giant’s parent, Head Digital Works, has filed a petition before the Karnataka HC against the new online gaming law. The new rules have banned real money gaming and left industry players scrambling for survival.

Arctus Aerospace Eyes $3 Mn: The deeptech startup is in talks to raise the capital in its pre-seed round from a group of investors, including South Park Commons and gradCapital. Arctus manufactures UAVs that provide high-resolution imagery.

Prosus Lines Up Funds For Rapido: The Dutch investor is in talks to pump $200 Mn in the ride-hailing major. While Prosus is considering both primary and secondary deals, the potential round will likely more than double the unicorn’s valuation to $2.7 Bn.

TVS Expands EV Lineup: The auto giant has launched a new electric scooter, TVS Orbiter, at an ex-showroom price of INR 99,900. The new offering comes with a 3.1 kWh battery, a range of 158 km, and 34 litres of boot space.

Dream11 To Shut Merchandise Biz: The gaming major’s subsidiary Fancode will shut down its sports merchandising business by October due to struggles with viability and the circulation of counterfeit products. It will now redirect the resources to core content operations.

OpenAI’s Localisation Problem: For the AI giant, India is more than a market – it’s a crucial laboratory, with millions of users and data for real-world testing. But the government wants it to conform to open-source models and strict data localisation. Will it give in?

It’s Raining ESOPs At Nykaa: The beauty and personal care giant has allotted 4.9 Lakh stock options to its employees. The shares were worth INR 11.6 Cr as per the stock’s last closing price of INR 234.20. This comes as Nykaa shares touched a fresh 52-week high yesterday.

Ola Electric Stock Recovers: The EV major’s shares surged 9.7% during the intraday trade on the BSE on August 28 on the back of improving Q1 results and PLI certification for its Gen 3 scooter portfolio.

Inc42 Startup Spotlight
Is This The Future Of Space Communication?

Radio frequency is the standard for communication, but it has a key drawback – increasing bandwidth reduces the signal’s range. This forces telecom companies to build a denser network of cell towers, which leads to higher energy consumption and land acquisition.

The Tech Play: To solve this, deeptech startup Olee has developed a free space optical communication (FSOC) hardware box, which can be integrated with telecom towers to transmit data and communication messages through light over longer distances. This allows telecom towers to use wider bandwidth with better coverage, even when far apart.

Olee’s Lightning Fast Speed: Unlike existing broadband networks that can provide the highest internet speed of 100 Mbps or a maximum of 1 Gbps, the startup claims to have achieved a speed of about 100 Gbps within a 1 km range. Its B2B model targets telecom and data centers, and is looking to capitalise on India’s $2 Bn FSOC market. In addition, Olee is also developing directed energy weapon platforms that can soft-kill target assets using the power of light.

What’s Olee Way Forward? The startup claims to generate 70% of its revenue from overseas clients and is also in talks to finalise strategic partnership with global players. Operating in a space where many have failed to find a ground, can Olee find light at the end of the tunnel?

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